California Penal Code §503 — Embezzlement
PC §503 defines embezzlement as the fraudulent appropriation of property by a person to whom it has been entrusted. Under PC §514, embezzlement is punished 'in the manner prescribed for feloniously stealing property of the value of that embezzled' — meaning grand theft (a wobbler) when the property exceeds $950 or is otherwise designated grand-theft property, and petty theft (misdemeanor, up to 6 months jail) otherwise.
Reviewed by Daniel S. Rubin, CA Bar 302093 · Los Angeles Criminal Defense Attorney · Embezzlement Cases in All LA County Courts
01 — Quick Facts
PC §503 — Embezzlement at a Glance
| Fact | Detail |
|---|---|
| Full Name | California Penal Code §503 — Embezzlement |
| Code Type | Penal Code (PC) |
| Classification | Wobbler (grand theft) / Misdemeanor (petty theft) |
| Grand-Theft Threshold | $950 (or firearm / auto / statutory categories) |
| Punishment | Punished as theft — PC §514 |
| Felony Term | 16 months, 2, or 3 years (§1170(h)) |
| Misdemeanor Term | Up to 6 months county jail |
| Restitution | Mandatory — full amount embezzled |
| §17(b) Reduction | Available (grand-theft felony) |
| Immigration | CIMT — deportable |
| Free Consultation | (213) 723-2337 — 24/7 |
01 — What Is PC §503?
What Is California Penal Code §503?
PC §503 Reads:
"Embezzlement is the fraudulent appropriation of property by a person to whom it has been intrusted."
— California Penal Code §503
PC §503 addresses situations where the defendant lawfully possesses another's property — through employment, agency, trustee, bailee, or fiduciary status — and then converts it for their own use. Unlike theft, the taking is not trespassory; the breach is the fraudulent conversion after entrustment. Common LA fact patterns include employee cash-register skimming, real-estate escrow diversion, elder-care caregiver conversion, and law-firm client-trust-account misappropriation.
Why This Law Matters
Embezzlement destroys careers because it is a crime of moral turpitude — professional licensing boards (DRE, Bar, DMV dealer, nursing, teaching) treat it as a per se character disqualifier, and it is a deportable CIMT. Because §503 is punished under §514 as theft, the value determines wobbler vs. misdemeanor status. Rubin Law, P.C. defends by challenging the fraudulent-intent element, negotiating civil-compromise resolutions under §1377, and pursuing §17(b) reduction and full restitution-based diversion.
Official Sources
02 — Elements of the Crime
Elements the Prosecution Must Prove Under PC §503
The People must prove each element beyond a reasonable doubt.
Relationship of Trust
The property owner entrusted the property to the defendant — employment, agency, bailee, trustee, or fiduciary.
Fraudulent Conversion
Defendant took or used the property in a way inconsistent with the trust and beyond the scope of authority.
Specific Intent to Defraud
Defendant acted with intent to deceive or cheat the owner. Good-faith belief in right of possession is a complete defense.
Property Belonged to Another
The property was owned by another person or entity — not the defendant.
04 — Penalties
Penalties for PC §503 Embezzlement in California
Penalty structure under PC §514 (punished as theft).
| Charge | Code | Prison Term | Probation | Strike |
|---|---|---|---|---|
| Grand-Theft Embezzlement (Felony) | PC §503 / §514 / §487 | 16 mo, 2, or 3 yrs county jail (§1170(h)) | Available | No |
| Grand-Theft Embezzlement (Misd. via §17(b)) | PC §503 / §17(b) | Up to 1 year county jail | Available | No |
| Petty-Theft Embezzlement | PC §503 / §514 / §488 | Up to 6 months county jail | Available | No |
| Aggravated White-Collar Enhancement | PC §186.11 | +2, 3, or 5 yrs (loss > $100K) | None if imposed | No |
Related Enhancements & Charges
Aggravated White-Collar
PC §186.11
Applies to a pattern of related felony conduct with loss over $100,000.
Excessive-Taking Enhancement
PC §12022.6
Additional 1–4 years for losses over $65,000 / $200,000 / $1.3M / $3.2M.
Elder / Dependent Adult Victim
PC §368(d)–(e)
Independent felony when victim is 65+ or a dependent adult.
Grand Theft (Companion)
PC §487(a)
Typically pled together with §503 when value exceeds $950.
Beyond the Sentence
- Crime of moral turpitude — deportable and impeachable
- Mandatory restitution — full loss amount plus interest
- Professional-license revocation (Bar, DRE, CPA, nursing, teaching)
- Civil suit exposure — conversion, fraud, breach of fiduciary duty
- Permanent bar from fiduciary employment
- Federal wire-fraud parallel exposure (18 U.S.C. §1343) in interstate cases
Sentencing References
05 — Defense Strategies
How Rubin Law Defends PC §503 Embezzlement Charges
Rubin Law, P.C. defends this offense through the following strategies.
Claim of Right / Good Faith
Good-faith belief in ownership, entitlement to commission, or right of offset defeats fraudulent intent — a complete defense to §503.
Claim of Right
No Entrustment Relationship
If the property was not entrusted — but was jointly owned, gifted, or held in defendant's own right — the §503 relationship element fails.
§503 Element
Authorized Use
Employer policies, written authority, or long-standing practice authorizing the conduct defeat conversion.
Authorization
Civil Compromise (§1377)
For misdemeanor-value cases, victim's acceptance of full restitution under PC §1377 supports dismissal.
PC §1377
§17(b) Reduction
Wobbler grand-theft embezzlements can be reduced to misdemeanor at prelim or post-conviction to preserve licensing and immigration status.
§17(b)
Restitution-Based Diversion
Rubin Law negotiates pre-plea and post-plea diversion structures conditioned on full restitution.
Diversion
Constitutional Sources
07 — Court Process
How PC §503 Embezzlement Cases Move Through Los Angeles Courts
Typical case flow through the LA County courts.
- 1
Step 1 — Investigation
Most §503 cases begin with employer / civil-side forensic audit and a police report. Do not speak to auditors or investigators without counsel.
- 2
Step 2 — Filing / Arraignment
DA files felony §503/§487(a) or misdemeanor §503/§488 based on value. Book-and-release common.
- 3
Step 3 — Pre-Filing Intervention
Rubin Law engages the DA pre-filing to negotiate restitution, civil compromise, or diversion before charges.
- 4
Step 4 — Preliminary Hearing
Element litigation focuses on entrustment scope and intent.
- 5
Step 5 — Motion Practice
§995 motion to dismiss, Pitchess where applicable, and §1538.5 on search of financial records.
- 6
Step 6 — Plea / Sentencing
Primary targets: §1377 civil compromise (misd.), §17(b) reduction, restitution-based probation, and licensing-safe pleas.
Los Angeles Courts That Handle PC §503 Embezzlement Cases
Filings are venued in the courthouse serving the employment / conversion location.
Reviewed by Your Attorney
Daniel S. Rubin — Los Angeles Embezzlement Defense Attorney
Daniel S. Rubin has defended clients charged with embezzlement and related offenses in Los Angeles County courts — including Clara Shortridge Foltz, Van Nuys, Compton, and Pomona. He understands that these cases are won in the details: the suppression hearing that eliminates key evidence, the preliminary hearing cross-examination that exposes a weak witness, the penalty phase argument that keeps a client out of the worst outcome.
This page was written and reviewed by Daniel A. Rubin, Los Angeles criminal defense attorney, CA State Bar 302093, with 10+ years of experience defending clients charged under PC §503 in Los Angeles County. Last reviewed: July 2026.
CA Bar 302093 | Whittier Law School | Rising Star — Super Lawyers 2019–2023 | Embezzlement Cases Throughout LA County
09 — FAQs
PC §503 Embezzlement Questions — Los Angeles
What is PC §503?
PC §503 defines embezzlement as fraudulent appropriation of property by someone to whom it was entrusted. Punishment tracks §514 — grand theft (wobbler) or petty theft (misdemeanor) based on value.
Is embezzlement a felony?
It depends on value. Grand-theft-level embezzlement ($950+ or statutory category) is a wobbler; petty-theft-level (under $950) is a misdemeanor. Grand-theft-level embezzlement can be reduced under §17(b).
Is claim of right a defense?
Yes — good-faith belief in a right to the property (commission, offset, ownership) negates fraudulent intent and is a complete defense to §503.
Can I settle by paying it back?
For misdemeanor-value cases, a civil compromise under PC §1377 may support dismissal. For felony-value cases, restitution supports mitigation but not automatic dismissal.
What are the immigration consequences?
Embezzlement is a crime of moral turpitude — deportable, inadmissible, and impeachable. A single conviction can trigger removal.
Will I lose my professional license?
Very likely. DRE, State Bar, CPA, nursing, teaching, and DMV-dealer boards treat embezzlement as a character disqualifier. §17(b) reduction and immediate-report compliance are essential.
How does §503 differ from §484 theft?
Theft under §484 is a trespassory taking without consent. Embezzlement under §503 involves lawful initial possession followed by fraudulent conversion. Both are punished as theft under §514.
Available 24/7 — Free Consultation
Charged with PC §503 Embezzlement? Call Rubin Law.
PC §503 is a career-ending CIMT and licensing disqualifier. Rubin Law, P.C. defends by challenging fraudulent intent, negotiating §1377 civil compromise, and pursuing §17(b) reduction. Call (213) 723-2337.